In the Short Run, There Are 500 Identical Firms in a Competitive

question 401

Multiple Choice

In the short run, there are 500 identical firms in a competitive market. The firms do not use any resources that are available in limited quantities, and each of them has the following cost structure: Which of the following is a point on the long-run supply curve?

• A) P=$10, Q=500.
• B) P=$6, Q=1,000.
• C) P=$5, Q=500.
• D) P=$5, Q=1,500.

Distinguish between export supply curves and import demand curves and their implications for trade.

Analyze the factors limiting complete specialization in international trade.

Understand the basic concepts and differences between domestic supply and demand curves, import demand curves, and export supply curves.

Analyze the impact of world prices on a country's desire to import or export goods.